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Impacts of Expanded Ethanol Production on Southern Agriculture

Published online by Cambridge University Press:  26 January 2015

Dwi Susanto
Affiliation:
Department of Agricultural Economics, Texas AgriLIFE Research and AgriLIFE Extension, Texas A&M University, College Station, TX
C. Parr Rosson
Affiliation:
Department of Agricultural Economics, Texas AgriLIFE Research and AgriLIFE Extension, Texas A&M University, College Station, TX
Darren Hudson
Affiliation:
Department of Agricultural Economics, Mississippi State University, Mississippi State, MS

Abstract

This study analyzes the potential impacts of expanded ethanol production on southern agriculture. Results of regression analysis suggest that acreage planted for field crops (corn, cotton, soybeans, and wheat) is inelastic with respect to relative prices. The results provide statistical evidence of potential significant acreage shifts favoring corn over cotton, soybeans, and wheat. Simulations indicate that higher corn prices will increase corn acreage, but the South continues to be a deficit corn region. U.S. corn production is capable of supplying domestic demand for ethanol, feed for livestock and poultry, and other uses, while maintaining exports at more than 2 billion bushels annually.

Type
Invited Paper Sessions
Copyright
Copyright © Southern Agricultural Economics Association 2008

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